JPMorgan Launches Ethereum-Based Tokenized MMF, Accelerating “On-Chain” Strategy for Traditional Assets

Tokenization of Traditional Assets Accelerates After "Genius Act" Passage
Minimum Investment Set at $1 Million

JPMorgan is launching its first tokenized money market fund (MMF) using blockchain technology, marking an active move toward the "on-chain" strategy for traditional assets.

According to the Wall Street Journal (WSJ) on December 15 (local time), JPMorgan Asset Management announced the debut of "MONY," the first tokenized money market fund to be operated on the Ethereum blockchain. JPMorgan will initially invest $100 million of its own capital into the fund before opening it to external investors.

The MONY fund is available only to individual investors with a minimum of $5 million to invest or institutional investors with at least $25 million. The minimum investment amount is $1 million. All transactions by MONY fund investors will be recorded on the Ethereum blockchain.

Since the passage of the "Genius Act" in the United States in July, Wall Street has been actively pursuing the tokenization of traditional assets. The legislation provided regulatory clarity for stablecoins and virtual asset companies and paved the way for non-bank payment firms to come under the supervision of the Office of the Comptroller of the Currency (OCC). As a result, efforts to tokenize everything from stocks and bonds to funds and physical assets are expanding.

John Donohue, Global Head of Liquidity at JPMorgan Asset Management, stated, "Clients are showing tremendous interest in tokenization. We plan to be a leader in this field by offering a diverse lineup of products that allow clients to have the same choices in blockchain-based funds as they do with traditional MMFs."

Tokenized MMFs are also attracting attention as a new alternative for cryptocurrency investors, as they can address the limitations of stablecoins that do not pay interest. Some tokenized MMFs are even being used as collateral assets on virtual asset exchanges.

This move by JPMorgan is seen as joining the on-chain strategies of global asset managers such as BlackRock, Goldman Sachs, and Bank of New York Mellon (BNY Mellon). BlackRock, for instance, currently operates a tokenized MMF managing over $1.8 billion in assets.

Previously, JPMorgan also tokenized private equity funds for its private banking clients. In addition, companies like Robinhood, Kraken, and Gemini are rapidly accelerating the convergence of traditional finance and digital assets by offering tokenized stocks and exchange-traded funds (ETFs) to non-U.S. investors.